Tuesday, June 1, 2010

Halocho #580 - Lending is a Mitzva

It's a Mitzva to lend money to a fellow Jew.

Included in the Mitzva is providing moral support and giving sage advice.

Even lending money to wealthy people - if they are short of cash - is a Mitzva.

One should not lend money without witnesses, unless the borrower provides collateral. Even better is to have the lender sign an IOU - a promissory note.

One may not demand collateral after the loan has been given to the borrower, except in a Bet Din (Jewish Court).

One may not use the collateral, as that would be a form of interest. One may rent out the collateral and deduct the rental from the loan, under certain circumstances.

Source: Kitzur Shulchan Aruch 179:1-3, 7-8

- Danny
Tuesday, 19 Sivan 5770

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